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Tuesday, 08 September 2020 16:42

AASP/NJ Meets With Legislators and Industry Reps on Claim Settlement Issues

Index

“Nowhere in an insurance policy does it say that an insurer will under-indemnify the consumer and short-pay the bill," McNee said. "Unfortunately, there are no repercussions for these actions. If I, as a body shop owner, can be subjected to legal consequences if I defraud somebody, why would that not also apply to insurers? There is nothing that stops them from doing what they’re doing.”

 

In regard to proper repairs, AASP/NJ voiced its concerns over the use of certain aftermarket parts, noting these items have not been recommended by vehicle manufacturers and could pose potential safety risks to vehicle occupants.

 

Stressing cost-containment, an argument was made by the insurance side that a vehicle could run in the six-figure range if it were rebuilt from scratch using only OEM parts.

 

Bryant offered the following statement in response to this position: “There are several parts for a vehicle, including the frame, that do not have an aftermarket option. That was an argument that didn’t hold water.”

 

Despite the friction points between the two industries represented, Bryant was pleased to have the opportunity to attend the meeting, voice collision industry concerns with the other attendees and promote the benefits of the New Jersey Insurance Fair Conduct Act.

 

“The meeting was successful in opening the lines of communication," Bryant said. "We brought up some important points that the legislators may not have been aware of, and we had an opportunity to express our concerns with insurance industry representatives. The bottom line is that our industry needs something strong enough to make insurers in our state follow the rules.”

 

“The legislators in attendance appeared very receptive to our needs,” added Cataldo. “I feel the biggest takeaway from the discussion was that our industry needs to continue to advocate for consumers, as they are the ones who are most affected by current insurer conduct and need to feel secure in knowing their vehicles are being repaired in a safe and proper manner.”

 

Source: AASP/NJ


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